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Synopsis

• Scheduled Commercial Banks’ (SCBs) net profit grew at 52.1% y-o-y for Q4FY23 due to robust growth in PreProvisioning Operating Profit (PPOP) and supported by lower requirement of provisions.

• Return on Assets (RoA, annualised) of SCBs improved by 36 bps y-o-y to 1.36% in Q4FY23 and it has been generally on an uptrend since Q1FY21.

• All SCBs have maintained their Capital Adequacy Ratio (CAR) greater than the minimum required level for Q4FY23. The median CAR of SCBs witnessed a rise of 40 bps y-o-y in Q4FY23.

The net profit of SCBs grew by 52.1% y-o-y to Rs.0.73 lakh crore in Q4FY23.

* PSBs’ net profit rose by 91.0% to Rs.0.34 lakh crore in Q4FY23 driven by robust growth in PPOP, also supported by lower requirements for provisions. The net profit of PSBs contributed ~47% of the total SCBs profit for the quarter, up from 38% in Q4FY22.

* PVBs’ net profit rose by 29.3% to Rs.0.39 lakh crore in Q4FY23 on account of robust growth in PPOP.

* Growth in NII and non-interest income helped SCBs’ PPOP to grow by 28.2% y-o-y to Rs.1.30 lakh crore in Q4Y23. PVBs PPOP also grew at a robust 28.1% y-o-y. Meanwhile, the provision of SCBs declined by 12.6% to Rs.0.32 lakh crore due to lower requirements from PSBs. While PVBs’ provisions increased by 8.5% y-o-y to 0.1 lakh crore in the quarter.

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